Which of the Following Is a Major Difference Between a Competitive

question 112

Multiple Choice

Which of the following is a major difference between a competitive price searcher and a price taker?

• A) Price takers need to compete through advertising because they cannot choose their own price, whereas competitive price searchers compete primarily through their pricing policies.
• B) Price takers are exposed to competition because of low barriers to entry, whereas competitive price searchers are somewhat immune from competition due to relatively high barriers to entry.
• C) Price takers can never earn economic profits, whereas competitive price searchers can earn economic profits in the short run.
• D) Price takers produce identical goods, whereas competitive price searchers produce goods that are differentiated from the goods produced by their competitors.

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Definitions:

Amazon Effect

The impact of the digital marketplace on the traditional retail sector, where increased online shopping has changed consumer expectations and business models.

Retail Marketplace

An online or physical space where multiple vendors can sell their goods or services directly to consumers.

Sell-Side Marketplace

An online platform or marketplace where sellers offer their products or services to potential buyers.

E-Marketplace

An online platform where buyers and sellers meet to exchange goods, services, or information, often facilitated by a third-party.